New Delhi: India, the world’s second biggest sugar producer, is considering giving export incentives for 1.4 million tonnes raw sugar, food minister Ram Vilas Paswan said on Wednesday, as mills started distress sale of the sweetener to pay cane farmers.

“The ministry’s views is that we should give subsidy for 1.4 million tonnes...the paper has been circulated for a cabinet meeting," Paswan told reporters.

Without any government incentive, Indian sugar is uncompetitive in world markets well supplied by low-cost producers Brazil and Thailand.

Subsidies of 3,300 ($53) a tonne helped exports of raw sugar last year and government sources said last month India was considering a rise in the subsidy to 4,000 rupees this year. Reuters